Item 32 Staff Report Follow-up Information for the Attached Council Report Continued From 01/16/1990 Regarding Authorizing the Town Manager to Execute a Contract with Peat Marwick Main and Company for Phase 1 of Information Systems Consulting ServicesTOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: February 2, 1990
TO: MAYOR AND TOWN COUNCIL
FROM: DEBORAH ACOSTA, TOWN MANAGER
COUNCIL AGENDA
DATE: 02/5/1990
ITEM NO. oa.
SUBJECT: FOLLOW-UP INFORMATION FOR THE ATTACHED COUNCIL
REPORT CONTINUED FROM 1/16/1990 REGARDING
AUTHORIZING THE TOWN MANAGER TO EXECUTE A
CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR
PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES
RECOMMENDATION:
It is recommended that Town Council adopt the resolution INCLUDED IN THE
CONTINUED COUNCIL REPORT FROM 1/16/1990 (attached) authorizing the Town
Manager to execute a contract with Peat Marwick Main & Company in an amount NOT
TO EXCEED $85,600 to provide the Town with PHASE I of Information Systems
Consulting Services.
BACKGROUND:
At the Council meeting of January 16, 1990, Councilmember Eric Carlson requested that
the Council report recommending an information systems consultant be continued until the
Council meeting of February 5, 1990. Councilmember Carlson requested this continuance
so that he could submit to staff a written statement of his concerns. His written statement
is included as Exhibit 1 to this report.
PREPARED BY: DEBRA J. FIGONE, Assistant Town Manager
Exhibits: 1, 2
Reviewed by: Attorney
TOWN ACTION DIRECTED TO:
ACTION OF COUNCIL:
SYS11;C:\WPSO\CISCLRPTS\PM RFSPON.RPT
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: FOLLOW-UP INFORMATION FOR THE ATTACHED COUNCIL REPORT
CONTINUED FROM 1/16/1990 REGARDING AUTHORIZING THE
TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK
MAIN AND COMPANY FOR PHASE I OF INFORMATION SYSTEMS
CONSULTING SERVICES
February 2, 1990
DISCUSSION:
A copy of Councilmember Carlson's concerns was FAXed to Peat Marwick Main and
Company, requesting that they respond in writing. Peat Marwick's written response is
included in this report as Exhibit 2.
The issues involved focus on two sets of concerns. One, that the primary objective of Phase
I be to come away with recommendations for specific software products, by name. Staff and
the Peat Marwick consulting firm fully agree that this is the primary objective of Phase I.
However, due the fiscal limitations and the need to implement systems incrementally, it is
essential that a comprehensive, Town -wide needs analysis be the foundation for these
recommendations.
In addition, staff and the Peat Marwick firm also recommend that cost/benefit analysis be
included as part of Phase I, and that whenever possible benefits to residents will be
quantified and used as a measure in selecting systems.
The second set of concerns focuses on avoiding vendor/consultant dependency. Regarding
the selection of only "Open Systems" such as UNIX or OS/2, staff and Peat Marwick will
ensure that if viable options for these platforms exist in software for municipal government,
they will be included in the recommendations brought to Council before any purchases are
made. A preference for Open Systems will also be indicated in the RFP. However, staff
will look at all options, open systems and proprietary, before making a recommendation to
Council.
Additionally, staff concurs that vendor/consultant dependency is NOT a desirable outcome
for Phase I, and that Town staff and the consultant will focus on developing a high degree
of self sufficiency for all Town personnel involved in the evaluation, selection, and use of
eventual systems. However, Town staff cannot undertake such a project and make a
blanket statement up -front that no amount of consultant assistance will be needed for
Phase II (Systems Acquisition, Installation, Performance Evaluation). However, no
expenditure will be made for Phase II without staff making a specific recommendation to
Council regrading this phase of the project. Staff agrees with Council that the ongoing
administration of new systems should be an in-house responsibility.
FISCAL IMPACT:
As indicated in the attached Council Report, A NOT TO EXCEED amount of $85,600 for
consulting services from the 1988-91 capital budget allocation for Computer Systems
Acquisition (Account No. 014-470-8366).
COMMENTS ON INFORMATION SYSTEMS STUDY
Eric Carlson 1/18/90
I have two sets of concerns relative to the Information Systems Study proposed to be
done by Peal Marwick. The firt set relates to the content/objectives of the study and the
second relates to making sure we do not repeat the mistakes of the Wang experience,
namely dependency on a consultant and on a single vendor. If we are going to spend
$85,000 on this study we MUST make sure the result is that we know what we want to
do and that we are capable of doing it ourselves. This was the result of the Emergency
Communications study and of the PC study. The Information Systems study is probably
more critical than either of these because we are replacing a complicated, proprietary
system on which our operations depend today.
PROPOSED CHANGES TO PHASE 1 OF THE STUDY:
1. We should specify that Phase 1 result in specific choices (by name of software
package) or alternative choices for the applications for each deparment. Just as we had
narrowed the choice of Word Processor in our PC study, we must identify the
applications needed for each department. The key goal of Phase 1 is NOT "needs
anaaysis" nor "information systems models," but the selection of applications that are
going to help us do a better job.
2. In order to evaluate the alternative systems and applications we must include the
"benefit/cost" analysis in Phase 1. For each system and application we should quantify
the intended benefits: improved service, reduced expenses, improved staff productivity.
With the benefits identified we can set priorities and determine the payback periods for
the new systems.
AVOIDING VENDOR/CONSULTANT DEPENDENCY:
1. In order to avoid being dependent on one vendor, we should specify that the "Wang
replacements" be "Open Systems." For the types of systems we need, requiring Open
Systems will result in the operating system being UNIX or OS/2 and the system CPU
(processo)r being one that is available in systems from more than one vendor. Because
we have picked "PCs" for our workstations, we will achieve a higher degree of
compatibility, less expensive networking and lower maintenance costs if our new
systems are based on the Intel 386 or 486 CPU and use the AT or EISA bus. We
should specify preference for these in our RFP. These choices may mean that not all
the applications we want will be available immediately, but the long term costs savings
from Open Systems will be enough to pay for the development of the applications.
However, UNIX on Intel processors is becoming a "standard" for software vendors,
second only to DOS on PCs, and thus we will find that in the long run the applications
we want will be available.
2. Our goal should be that we can evaluate alternatives, administer the systems and
select future applications without need of consultants. Thus one of the goals for the
staff for Phase 1 should be to learn enough NOT TO NEED A CONSULTANT FOR
PHASE 2. If we cannot do the acquisition and implementation by ourselves with the
help of the vendor and if we cannot do performance analysis ourselves, then we will
have made no progress towards self sufficiency. We may still need consultants to help
implement critical applications, but we should not need them for systems
evaluation/selection or administration.
1
Peat Marwick
2495 Natomas Park Drive
Sacramento, CA 95833 2936
Ms. Debra J. Figone
Assistant Town Manger
Town of Los Gatos
110 E. Main Street
Los Gatos, California 95032
OBIT
Telephone 916 925 6000 Telecopier 916 641 3199
January 25, 1990
Dear Ms. Figone:
KPMG Peat Marwick would like to thank you and Mr. Brian Jones for
providing us the opportunity on Tuesday to review the Town
Council's concerns regarding our proposal to serve as the
consultant to the Town of Los Gatos on the Information Systems
Planning and Implementation Project.
The Town Council's concerns were related to the following two
areas:
o Comments on the Information Study; and
o Avoiding Vendor/Consultant Dependency.
As you requested, our response to these concerns is provided in the
remainder of this letter.
COMMENTS ON THE INFORMATION STUDY
Concern #1 - Specific Applications
Peat Marwick agrees with the Town Council that the key goal of
Phase I of the study is "the selection of applications that are
going to help us (Town) do a better job" and not "needs analysis"
nor "information models".
Our proposed approach and workplan for Phase I does include the
tasks related to the performance of an "Information System Needs
Assessment" (Task 1) and the "Definition of Departmental
Information System Requirements" (Task 2), including the
development of system models. However, these tasks are required
to fully identify the Town functions and activities, by department,
that could be more efficiently and effectively performed through
the increased use of automation.
1
Member firm of
Klyrrveld Peal Marwick Goerdeler
AM 4f Peat Marwick
Ms. Debra J. Figone
Assistant Town Manager
Town of Los Gatos
January 25, 1990
Page 2
The ultimate goal of our workplan for Phase I will be the
identification of specific application solutions (or alternative
application solutions) that the Town can acquire and implement to
meet the requirements identified in Tasks 1 and 2. Task 5 will
include the activities required to review and evaluate vendor
proposals for specific application solutions in response to the
Town's RFP(s) developed in Task 4.
As requested by the Town, Phase I will conclude with contract
negotiations with the successful vendor(s).
Concern #2 - Benefit/Cost Analysis
Peat Marwick also agrees with the Town Council regarding this area
of concern. In fact, our approach and workplan includes the
assessment of costs and benefits of feasible alternatives (see
Proposal page III-10, Task 3). We believe that if the benefits to
be achieved through automation can be identified and weighed
against the costs to be incurred, our clients can make more
informed decisions about setting priorities and establishing
acquisition and implementation plans.
Our approach to the definition of information system requirements
is built on the premise that the functions or activities to be
automated must be "cost justifiable" in that we do not recommend
automation just for the sake of automation. During our interviews
with department management and staff in Task 2, we will focus on
current inefficiencies, problems, occurrences of redundancy, etc.
in an attempt to quantify expected benefits.
Historically, Peat Marwick has used very effective techniques to
identify benefits in terms of improved service to the public,
reduced operating costs, improved productivity, improved
efficiency, future cost avoidance, etc. We will employ these same
proven techniques during our work with the Town.
MIPPeat Marwick
Ms. Debra J. Figone
Assistant Town Manager
Town of Los Gatos
January 25, 1990
Page 3
AVOIDING VENDOR/CONSULTANT DEPENDENCY
Concern #1 - Open Systems
Peat Marwick fully understands the Town Council's concerns related
to vendor dependency. During requirements definition and system
replacement projects, our goal is to help ensure that our clients
can fully exploit the technology to be acquired without the need
for ongoing system support or consulting contracts. Where feasible
and practical, we assist our clients in acquiring solutions that
best meet their requirements without the need for a hardware or
software vendor having to be on site to "turn the system on in the
morning and turn it off at night".
Our approach to performing projects for clients similar to the
project about to be undertaken by the Town is based on our
recognition that several key areas must be addressed to ensure that
all feasible solutions are evaluated and that the most appropriate
solutions are selected and implemented for our clients.
Our view of current trends in information technology includes a
number of areas for governments that wish to establish the
foundation for integrating and exploiting evolving technology.
Important areas for consideration are open systems, portability and
standardization.
Attachment A to this letter provides an overview of technology
trends to present Peat Marwick's understanding of and approach to
exploiting the underlying technology issues that are important
today and as a result, will need to be addressed during this.
project. The attachment discusses our recognition of emerging
technology trends. Moreover, it is important to balance these
trends with proven applications and technology available in today's
technical marketplace.
MN Peat Marwick
Ms. Debra J. Figone
Assistant Town Manager
Town of Los Gatos
January 25, 1990
Page 4
Concern #2 - Transfer of Knowledge to Town Staff
The final concern raised by the Town Council was in the area of
Town staff gaining knowledge in Phase I of the project to move
towards self sufficiency. Again, Peat Marwick agrees with the Town
Council in that we view the project as a cooperative effort between
Town management and staff and our project team.
Peat Marwick believes that the best results are achieved when
clients are actively involved in the project. During the Town's
project, we will endeavor to involve department personnel in each
functional area in the engagement, while minimizing the disruption
of daily operations. We will work with the staff of each
department to ensure that data collected accurately reflect
departmental operations, and functional and technical requirements.
In the course of working closely with the Town's staff, we will
take every opportunity to educate the staff regarding the
appropriate use of information technology in meeting departmental
needs. We will also walk through work products and scheduled
deliverables with Town staff before finalizing them to ensure that
they meet the Town's needs.
In the Town's Information System Plan, a number of factors have
been identified which are critical to the successful management of
the Town's information resources. These critical success factors
are as follows:
o To achieve alignment between the Town's overall business
strategy and the Town's Information System Plan through the
identification of the Town's specific information
requirements and the prioritization of the Town's
information system implementation efforts;
o To realize success in fulfilling the Town's information
requirements, the users of the information systems to be
implemented in the Town must be involved and committed to
the information system implementation effort;
o To ensure that the execution of the Town's business plan
is enhanced and not hindered by its information system
infrastructure; and
INIMPeat Marwick
Ms. Debra J. Figone
Assistant Town Manager
Town of Los Gatos
January 25, 1990
Page 5
o To ensure that the complexity of the technology and the
number of people required to support the technology are
kept to a minimum.
We agree that these factors are critical to the successful
management of the information resource function within the Town of
Los Gatos. Consequently, our approach is directed at responding
to the critical success factors outlined in the Town's Information
System Plan.
Again, we appreciate the opportunity to address the concerns of the
Town Council, to further clarify our proposal and to describe how
we can assist the Town in this most important project.
If you have any questions regarding the information provided in
this letter or in the attachment, or if you require any additional
information, please contact me or Mr. Stuart L. Nelson in our
Sacramento office at (916) 925-6000.
Very truly yours,
KPMG PEAT MARWICK
Peter R. Fulicher, Principal
cc: Executive Task Force
Attachment A - Overview of Technology Trends
TE«:' OLOGY TRENDS
The technology life cycle is currently less than two years. This
means that decisions made today may very well be obsolete in two
years. We, at KPMG Peat Marwick, have accepted the challenge of
maintaining leadership and achieving excellence for our clients
in this constantly changing technical environment.
KPMG Peat Marwick currently recognizes several key areas for
governments that wish to establish the foundation for integrating
and exploiting evolving technology:
o System Architecture;
o Open Systems and Standardization;
o Integration;
o Computer -Aided Software Engineering (CASE);
o Managing Organizational Change (MOC);
o Relational Technology; and
o Downsizing.
Each of these areas is briefly discussed in the following
paragraphs to present KPMG Peat Marwick's understanding of the
underlying technology issues that are important today and as a
result, will need to be addressed during this project.
System Architecture
System architecture is the primary topic in the strategic planning
document for the use of technology. Without an overall plan for
the use of technology, an organization will develop fragmented
solutions and will constrain its use of technology for increasing
productivity, efficiency, and innovation. KPMG Peat Marwick uses
a concept that first establishes the existing baseline and then
defines the future vision of the environment. After this, we begin
to set objectives and goals that are needed to migrate the
existing baseline to the future baseline. This process should
clearly define both the technical and functional architectures
necessary to support the future vision.
The technical architecture should include an interoperability
strategy among different machines and computer systems, data
access methods and data collection and tracking standards, and
interface to organizations outside the Town where we may wish to
implement Electronic Data Interchange (EDI) or some other
interface. Governmental entities should define interfaces among
its systems to facilitate interoperability and data sharing. The
architecture will also suggest the standard relationships among
the major system components (people, procedures, hardware,
software, and data communications). KPMG Peat Marwick uses this
technology to help our local government clients make better use
of information system technology in their strategic planning
process.
1
Open Systems and Standardization
A second major technology emerging within the computer industry
is the concept of open systems and standardization. This
technology ensures interoperability among systems and the entities
that operate, maintain, and use them. Hardware from a variety of
vendors now interconnect, and software can function gracefully in
a multi -vendor hardware environment. This standard interface can
reduce training and other ongoing operations costs as users begin
to use a wider range of application systems on various hardware
platforms.
Finally, computer systems and terminals can plug into a standard
data communication network which also supports voice and video
communications. Although this technology is in its infancy,
organizations must carefully consider this major computer industry
direction to successfully integrate future technology advances.
KPMG Peat Marwick has an excellent background with and a thorough
understanding of this new technology.
Over the next four years, it is anticipated that significant
progress in the use of open systems and standards and the
availability of standard products will be realized. The list
below includes some of the principal architectures and interfaces
for the technical environment and their expected implementation
availability. Some proprietary solutions are listed for
functional comparability:
o Open Systems Interconnect (OSI) (1993-1995);
o CCITT X.400, FTAM (parts of OSI layer 7) (1989);
o X.500 (directory services) (1990-91);
o Integrated Services Digital Network (1992-94);
o UNIX (1992-93);
o On/Network Management (1994-95);
o User Interfaces:
- IBM and Microsoft's OS/2 (1989);
- Presentation Manager (1989-90);
- OSF/Motif (1990);
- UNIX Intl/Open Look (1989-90); and
- Apple Macintosh (1989).
o IBM System Application Architecture (SAA) (1991-95);
o ANSI/Structured Query Language (SQL) (1989); and
o LU 6.2 (1989-91).
These considerations may be extremely important in evolving a
governmental organizations future computing environment.
2
Integration
Several major studies have indicated that it is the integration
of technology into the business process that gains the greatest
increases in return on investment (ROI). Nolan Norton & Co., an
Information Technology Firm of KPMG Peat Marwick, found that
organizations use PC technology similarly to information system
technology. The Nolan Norton methodology, which evolved in the
early 1970's, was a pioneering effort that led to a much greater
understanding of the way organizations accommodated changes as
technology was introduced.
This methodology analyzed the stages in the growth of the use of
information technology within an organization. In early 1989,
Nolan Norton published its four -stage PC Life Cycle, demonstrating
clearly that those organizations that reach Stage Four will gain
as much as a 10-1 ROI. The key to success is the integration of
the business processes with the technology.
A second major aspect of integration is the ability to use
multi -vendor integrated solutions to meet business requirements
for effective use of technology. KPMG Peat Marwick/Sacramento has
significant experience in integrating computer systems into usable
networks. Integration of application systems has been, and
continues to be, an important consideration in Town Information
System Architectures.
Computer -Aided Software Enaineerina (CASE)
Software maintenance costs can be nearly 65% of an information
system budget and continue to be a significant drain on software
development resources. Yet, as the price of hardware continues
to drop and computer processing power increases, many new
application areas are now ready for cost-effective implementation.
Initial results indicate that the XA Systems CASE tool, GOLDRUN,
has provided productivity levels of 25,000 lines of COBOL code per
person -year. Maintenance costs for GOLDRUN systems vary between
20 and 35 percent of development costs, while traditionally
developed applications cost about 80 percent of development costs
to maintain.
CASE technology is maturing and gaining widespread acceptance in
the industry. The improvements in productivity, reduced
maintenance costs, quality, and user responsiveness make it a
technology that should not be ignored.
3
Managings Organizational Chance [MOC1
Change has a major influence on the success of implementing any
project. Technology is always causing organizations to change.
KPMG Peat Marwick recently completed a strategic alliance with
O.D. Resources, Inc. (ODR) to gain access to the best "change"
research in the industry. ODR has sixteen years of experience
working with large and small organizations on complete in-depth
analysis to formulate an objective approach to managing the
implementation of change. ODR's powerful Managing Organizational
Change (MOC) methodology is a systematic procedure for managing
the human aspects of large-scale organizational changes.
Many change projects result from the implementation of technology.
Many organizations are now recognizing the power of this
methodology as a way to successfully implement these changes. A
completed system architecture almost always forecasts the
implementation of major organizational change. The Strategic Plan
must carefully review the DP and user community's capacity to
assimilate change.
Relational Technology
The data processing environment has three basic options for the
management of data in a data base system environment.
Hierarchical and network data base systems have been the primary
choice for many years, but the current industry trend is toward
relational data base technology for a variety of reasons. Through
the use of relational technology, the information in the
organizational data bases is accessible where other types of data
bases often require complex software development to gain access
to data; the price of hardware is low, and it is cost-effective
to buy more hardware to reduce the cost of software.
The industry is providing a growing number of hardware and
software products that support the SQL interface to relational
data bases. As you already recognize, the current and potential
use of relational technology should be a part of the review of
business information needs and architecture options.
The worldwide market in 1987 for mainframe and minicomputer DBMS,
according to the Gartner Group, was $3.1 Billion. Relational data
base management systems had 61 percent of that market. Analysts
expect the relational data base market share to increase to 85
percent by 1992.
4
sizing
Solving business problems with smaller computers versus
centralized mainframe computers is becoming even more economically
compelling with time. Microcomputers are over one hundred times
as cost effective per unit of raw processing power than
mainframes. While mainframe price/performance is improving at 15%
to 20% annually, microcomputers are improving performance by 30%
to 40% annually, and this gap is widening.
Table I below shows a recent comparison.
TABLE I
PRICE/PERFORMANCE COMPARISON
Machine MIPS CPU Price Cost/MIPS
IBM PC AT 1 $ 1,000 $ 1,000
Sun 3 4 $ 10,000 $ 2,500
DEC 8800 12 $ 600,000 $ 50,000
IBM 3090 80 $11,500,000 $144,000
Amdahl 115 $13,100,000 $114,000
The challenge, then, is to design an architecture that: supports
the business plan and takes advantage of the price performance
characteristics of micros; integrates the micro -based solutions
with mini and mainframe -based applications; and, at the same time
maximizes the existing investment in current mainframe and micro
technology.
5
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: January 12, 1990
TO: MAYOR AND TOWN COUNCIL
FROM: DEBORAH ACOSTA, TOWN MANAGER
COUNCIL AGENDA
DATE: 01 / 16/ 1990
ITEM NO. /
SUBJECT: ADOPTION OF RESOLUTION AUTHORIZING THE TOWN
MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK
MAIN AND COMPANY IN AN AMOUNT NOT TO EXCEED $85,600
FOR PHASE I OF INFORMATION SYSTEMS CONSULTING
SERVICES
RECOMMENDATION:
It is recommended that Town Council adopt the attached resolution authorizing the Town
Manager to execute a contract with Peat Marwick Main & Company in an amount NOT
TO EXCEED $85,600 to provide the Town with PHASE I of Information Systems
Consulting Services.
BACKGROUND:
In 1988, Council approved a staff -prepared conceptual Information Systems Plan. In that
plan, eight action steps were outlined to begin automating certain Town functions (see
ATTACHMENT A). The first six steps in that plan have been implemented (or revised
due to changing needs). Step 7 is the selection of an information systems consultant to
assist the Town in developing a detailed, Town -wide information systems plan and the
implementation of major software and hardware solutions to address the Town's automation
needs. (Continued on page 2)
PREPARED BY: DEBRA J. FIGONE, Assistant Town Manage
Exhibits: Attachments A, B, C, D, E
Reviewed by: Attorney
TOWN ACTION DIREC.1hD TO:
ACTION OF COUNCIL:
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PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPTION OF RESOLUTION AUTHORIZING THE TOWN MANAGER
TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND
COMPANY IN AN AMOUNT NOT TO EXCEED $85,600 FOR PHASE I OF
INFORMATION SYSTEMS CONSULTING SERVICES
January 12, 1990
Acquisition and implementation assistance
Evaluation of system(s) performance
All proposals were evaluated by members of an Executive Task Force (Deborah Acosta,
Debbie Figone, Lee Bowman, Larry Todd, Peggy Murray, and Brian Jones).
Of the eleven proposing consulting firms, six warranted follow-up and further evaluation.
An oral interview process was conducted with these six firms. After the initial round of
interviews, the field was narrowed to two firms (Peat Marwick Main & Company and The
Warner Group). Both firms were asked back for a more extensive interview and evaluation
meeting.
These two firms demonstrated the highest level of collective expertise for all their team
members, had a high level of general municipal experience, and displayed flexibility in their
willingness to "go the extra mile." In the final analysis, Peat Marwick Main and Company
demonstrated a somewhat higher degree of flexibility than the Warner Group. The
consensus of the Executive Task Force was that the Peat Marwick consulting firm was
qualified to perform the project and, overall, would "best fit" the requirements of the Town.
On January 8, 1990, the Peat Marwick consulting firm was asked back again to meet with
the Council representative, Bob Hamilton. During the course of the meeting, the scope and
methodology of the project was reviewed, and questions were directed to the consulting
firm. At the conclusion of the meeting, Councilman Hamilton concurred with the group's
findings that the Peat Marwick consulting firm was qualified to perform the project.
In an effort to consolidate the consultants' pricing into a more comprehensive package for
PHASE I, the two "finalists" were asked to incorporate Contract Development and
Negotiations pricing (from PHASE II) into PHASE I. This brought Peat Marwick's $74,000
original PHASE I pricing up to $85,600. The Warner Group's revised pricing for PHASE
I came in as a price range of $83,220 to $102,120 (See ATTACHMENT D).
Benefits and Need
The Information Systems Plan produced by staff in 1988, was the first step in beginning the
process of automating certain functions within the Town. This plan provided a general
framework and direction for automation. It does not, however, provide the detail necessary
to implement major systems, nor does it attempt to define the technical requirements for
system performance. In addition, the Town's plan does not describe the trade-offs involved
relating to the selection of specific software applications and the degree to which these
applications can be integrated across departments.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPTION OF RESOLUTION AUTHORIZING THE TOWN MANAGER
TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND
COMPANY IN AN AMOUNT NOT TO EXCEED $85,600 FOR PHASE I OF
INFORMATION SYSTEMS CONSULTING SERVICES
January 12, 1990
An awareness/knowledge transfer of the information system possibilities to Town staff
of currently available systems.
A specific set of recommendations for hardware/software integrated solutions.
A Request for Proposal (RFP) or Proposals for the major systems listed above.
Contract development and negotiations with vendors selected through the RFP
process.
The concurrent work approach which would be conducted by the consulting team should
significantly expedite the process of automating the Town's major systems. The Peat
Marwick proposal indicates an estimated six to nine months to complete PHASE I (i.e.,
needs analysis through contract negotiations --this does not include implementation).
Bringing the experience of a consulting team to bear on a project of this scope will also
help to ensure that the Town has a clear path for automation, and the potential for a high
degree of success in both the "individual major system areas" and "the level of integration
between systems."
CONCLUSION:
Although Peat Marwick is not the least -cost response, the members of the Executive Task
Force feel that this consulting firm has the broad range of expertise necessary to provide
very thorough consulting services to the Town. During the interview process the Peat
Marwick team members repeatedly demonstrated flexibility and an ability to work well with
Town staff. We believe that the Peat Marwick firm can provide the expertise and
management skills necessary to bring this project to successful implementation.
FISCAL IMPACT:
A NOT TO EXCEED amount of $85,600 for consulting services from the 1988-91 capital
budget allocation for Computer Systems Acquisition (Account No. 014-470-8366).
RESOLUTION NO.
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT
WITH PEAT MARWICK MAIN AND COMPANY FOR
PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into a contract with Peat
Marwick Main and Company in an amount not to exceed $85,600 for Phase I of
Information Systems Consulting Services, and that the Town Manager is authorized, and is
hereby directed, to execute said contract in the name and in behalf of the Town of Los
Gatos.
ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the day of , 1989 by the following vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT. COUNCILMEMBERS
SIGNED:
ATTEST.
MAYOR OF THE TOWN OF LOS GATOS
TOWN CLERK OF THE TOWN OF LOS GATOS
MG011690.R1
ATTACHMENT A
VII. Action Plan:
With the conceptual framework and guidelines in place, we
propose to begin acquiring minor system components for "most
benefit" locations. Thus, we propose to:
1. Acquire, through the RFP process, personal
computers and printers to provide some immediate
solutions to the problems identified in this
report.
2. Finalize the evaluations of PC based word
processing programs, and acquire the selected
program with the acquisition of the PCs.
3. Begin user training for the selected word
processing program upon acquisition of PCs.
4. Acquire emulation software which allows a PC to
emulate a Wang terminal (upon acquisition of the
PCs).
5. Order and install Wang circuit boards and cables
which will allow the Finance program to operate on
the Police System.
6. Begin the evaluation process for a PC based
spreadsheet program and acquire the program upon
completion of the evaluation.
7. Enlist the services of an information systems
consultant to define our information system
specifications for a total, Town -wide integrated
system for phased implementation.
8. Propose the design and acquisition of a Police
Records Management System and CAD System in the
1988-89 Capital Improvement Budget.
Each of these steps is discussed below.
1. Acquisition of PCs and printers:
Essential criteria for these components is that they must be
compatible with a future integrated Town -wide Information System
or be justifiable as stand-alone systems.
Given these criteria, the initial components should also provide
some immediate solutions to the problems identified in this
report. Wpropose
benefitsowhilebegin
maintainingsolutions
the integrity ofothee the
most instant
Conceptual Model.
20
ATTACHMENT B
TOWN OF LOS GATOS REQUEST FOR PROPOSAL
FOR INFORMATION SYSTEMS
CONSULTING SERVICES IMPLEMENTATION
INTRODUCTION
The Town of Los Gatos invites proposals from qualified information systems consultants and/or analysts to
provide professional services for the development of a comprehensive
h�Ve pific n�dsingsne needs software and
ysis and
implementation plan. Consultants will be expected to provide
hardware solutions for the following information systems areas:
1) Administration, including Finance, Personnel, and Records Management and Retention.
2) Police, including Crime Analysis, Records Management, and Computer Aided Dispatch.
3) Geo-base. including Property Information Systems for Planning, Building, Engineering, and Permit
Tracking.
4) Library, including Circulation, Public Access Catalog, and Technical Services.
A description of the Town's "vision'' of what is meant by these systems is included in the attached "Information
Systems Plan" (ISP). In addition, supplemental Information on the Library system is included as attachment C.
Additional systems may be identified through the needs analysis process.
The Town will not consider proposals from consultants who are affiliated with manufacturers. distributors, or
vendors of computer equipment or software of any kind.
GENERAL INFORMATION ABOUT THE TOWN
Los Gatos is one of Santa Clara County's oldest communities. In 1840, the Mexican government granted a land
patent to Sebastian Peralta and Jose Hernandez for a rancho to be called La Rinconada de Los Gatos the
corner of the cats). The anginal rancho covered 6,600 acres in the West Valley area, of which 100 were selected
for the site of the Town of Los -Gatos in 1868. Incorporation was in 1887.
Because of its distance from other centers of population, Los Gatos developed a complete community structure
having residential, business and industrial elements.
From the first 100 acre Town site and an 1890 census population of 1,652, Los Gatos grew by the time of its
initial General Plan adoption in 1963 to an area of approximately 4,000 acres, or 6.3 square miles. and a
population in excess of 11,750. By the time of the first major General Pos � ion tos cio rs apprin oximately e Town
1had square
grown
to an area of 9 square miles and a population of 24,350. Today
miles and has a population of 28.114 persons.
Los Gatos' boundaries encompass a wide variety of terrain. ranging from level land to steep and densely wooded
hillsides. oThe sharp
visual contrasts among these features maintains the picturesque setting of the Town. In the
midst of an increasingly uniform urban complex, this setting has attracted inhabitants with a preference for the
continuation of the area's distinctive high quality environment.
The Town of Los Gatos is a general law city operating under a Council -Manager form of government, with 12
departments located in 6 different building sites.
The Civic Center, located at 110 East Main Street houses the following operations - Mayor and Council, Town
Manager, Personnel. Town Clerk, Town Attorney, Town Treasurer, Finance, Building Regulation, Planning, and
Engineering: Police department. including Communications Dispatch Center, and Town library.
1
9) Quality - Systems should demonstrate high mean -time before failure for system components.
In addition, since the time of this report, items 1 through 6 of the "Action Plan" beginning on page 20 have been
implemented. The following hardware and software systems have been acquired:
PC's - The Town currently has 16 HP Vectra ES 12 PCs (MS-DOS 286 machines), and 2 Toshiba
3100e lap -tops.
Wordperfect - The Town has adopted Word Perfect as the standard PC based word processing
program (ISP p 23).
Excel • Excel has been selected. and is in use, as the spreadsheet for the Town.
Cable Plan - The entire Town Hall has been rewired for voice and data using twisted pair (four
pair for voice and four pair for data). In addition, a fiber optic cable has been installed but not
"connectorized" for a future data communications back -bone.
Digital Telephone System - The Town is currently using a Northern Telecom Meridian SL1-
RT Digital Switch.
As reflected in the Information Systems Plan report, departments have varying levels of automation in place.
Additionally, there are varying levels of understanding of automated possibilities, and of preconceived ideas for
information systems solutions. As part of the needs a"essnment process' the consultant of choice willbe expected
to develop an understanding of existing departmental operations, whether manual or automated- The consultant
will also be expected to educate Town staff. as needed, on the possibilities for automated solutions for meeting
departmental needs. This is required in order to achieve the objective of having a successful implementation.
The educative approach will promote participation and gain commitment.
SCOPEOF WORK
Overall Objectives
1) To provide specific recommendations for hardware and software solutions for Administration, Police,
Geo-base, and Library systems, and
2) To provide for acquisition, implementation and follow-up performance evaluation of those systems.
e
Note: At the time of this Request for Proposal,the
Town fully intencis to meet fiscal analysis, and recommndedu mplementatton
one.
A careful review of the resulting alternatives,
schedule, however, will determine whether or not the Town will proceed to implement any of
the reconunendations.
In achieving the first objective, the following "deliverables" are expected:
1) A detailed analysis of departmental information systems requirements. Analysis to include, but not be
limited to, inter and intta departmental information flows, conversion of manual systems to automated
systems, specific data elements, security needs, and expected growth.
2) Detailed information systems models that translate
the results of the needs analysis into "approvable"
models for system components. Models should describe,in layman's terms, using text and graphics, what
the system components will achieve. Models should describe, at a minimum, system inputs, outputs, and
principal interfaces.
3) Specific alternatives recommended in priority order that will satisfy the models addressed above. Each
proposed set of alternatives should include a financial plan and an implementation plan and schedule.
4) Assistance to Town per
sonnel in evaluating alternatives through product reviews and demonstrations,
site visitations and viewing live operations.
3
SELECTION PROCESS
The award of consulting contract will be made based on the evaluation of proposals by a selection committee.
Selection criteria to include but not be limited to:
Experience, including public sector experience
Approach
Time to complete
Price
References
Non -affiliation
Additional criteria will be used as necessary. The Town of Los Gatos reserves the right to reject any or all
proposals. Proposals will become part of the official files of the Town of Los Gatos and cannot be returned.
HOW TO SUBMIT
Ten copies of proposals should be submitted to:
Debra Figone, Assistant Town Manager
110 E. !Mitt Street
Los Gatos, CA 95032
Town staff will conduct a question and answer session on the RFP on Thursday. April 13, 1989, at 9:30 A.M in
the Town Council Chambers located at 110 E. Main Street, Los Gatos, CA 95032. All consultants interested
in submitting proposals are invited to attend. The purpose of this session is to answer specific questions about
the RFP and Town operations in an open forum.
The deadline for submission is Friday, May 12, 1989, by 5:00 PM.
Based upon a review of the proposals, only those consultants demonstrating the best qualifications willbe invited
to continue in the selection process. Follow-up interviews are tentatively planned for the week of May 9. 1989.
The anticipated award of contract by the Town Council is June 19, 1989.
ADDITIONAL REQUIREMENTS
Upon award of contract for consulting services, the consultant will be required to:
),
1) purchaserovidea Town of Los Gatos ce inss cense the amount (estimated 1,000,000cost ,nnaming the Town as additionally
2) provide proof of general liability
insured, and
3) sign a hold harmless agreement.
Further questions should be addressed to Debra Figone, Assistant Town Manager or Brian Jones, Information
Systems Intern at 354-6832.
PILOTOOtW:1CNCt2AFP
5
ATTACHMENT C
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ATTACHMENT D
REVISED COSTS BREAKDOWN FOR INFORMATION SYSTEM CONSULTANTS "FINALISTS"
PHASE I
Expenses @ 20%
RFPS
Expenses @ 20%
Contract Negotiations
Expenses @ 20%
TOTAL PHASE I
PHASE II, ESTIMATE
Expenses @ 20%
TOTAL PROPOSAL
ESTIMATE, PHASE II NOT YET NEGOTIATED
WARNER GROUP
$30,000
$6, 000
$29,000 to $39,000
$5,800 to $7,800
$10,350 to $16,100
$2,070 to $3,220
$83,220 to $102,120
$28,750 250 Hours
$5,750 $5,750
$111,970 to $136,620
PEAT MARWICK
$85,600
Inc
Inc
Inc
Inc
Inc
$85,600
$29,600 180 to 380 Hours
$115,200
SYS7;C:\WINDOWS\PEATWARN.XLS
Page 1 1/9/90 10:50 AM
ATTACHMENT E
In response to concerns by Councilmember Eric Carlson, the following comments are
included as part of this report:
1. Once the information/automation needs have been identified, the
selection portion of the project will focus on applications (i.e., the
selection process will be software, not hardware, driven).
2. The goal of Phase I is for the Town to become as self-sufficient as
possible. The intent of this project is not become tied to
consultants for ongoing assistance, but, rather, to select systems that
can be managed by Town staff.
3. During the course of Phase I, information systems workload and
performance measures will be developed which reflect, to the
degree possible, enhanced service to the residents of Los Gatos.
These measures will be refined and improved as new systems are
brought on-line.
February 5, 1990
Los Gatos, California
INFORMATION SYSTEMS/PEAT MARWICK/CONTRACT/CONSULTING SERVICE
Motion by Mr. Carlson, seconded by Mr. Ventura, to readdress this issue keeping in mind the
following concerns: 1) Focus the study on open systems. 2) Try to build an integrated network
across a variety of departments with open systems. 3) In order to keep from becoming vendor
dependent, study open systems where there is more than one vendor who can sell both the
hardware and the software for the basic product. 4) Phase One should delineate specifically
the set of applications, by name, that the Town will choose from. 5) Re -specify phase one in
the areas of open systems and applications and see what the return bid will be. $85,000 is too
high. Constrain that amount, and see what open systems are available, formulating an integrated
plan by specifying the applications that are going to be needed and how they are going to work
together. Carried unanimously.
WASTE DISPOSAL/TOWN CODE AMENDMENT/CHAPTER 14/ORDINANCE INTRODUCTION
Motion by Mrs. Benjamin, seconded by Mr. Carlson, to reconsider the ($.82) eighty-two cent
fee; the goal being to encourage people to recycle, not cause a disincentive for the program;
and Monte Sereno is at this time picking up the cost of this service which raises questions as to
how our community is handling it. Mr. Ferrito supported the motion restating previously
addressed concerns such as the people who recycle should be able to obtain lower rates for their
efforts making recycling free and charging more for additional cans of trash put out. That the
overall rate structure should be addressed at one time. Request was made of staff to clarify the
situation in a report and the $.82 will be reconsidered during the disposal rate hearings March
5, 1990. Carried unanimously.
Motion by Mr. Ventura, seconded by Mrs. Benjamin, to waive the reading of the draft
Ordinance. Carried unanimously. The Town Clerk read the title of the Ordinance.
Motion by Mr. Ventura, seconded by Mr. Carlson, that Council introduce Ordinance entitled,
ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 14 OF THE TOWN
CODE RELATING TO REGULATING RECYCLABLE MATERIALS. Carried unanimously.
COUNCIL CALENDAR OF MEETINGS
Council rescheduled joint meeting with Planning Commission for March 12, 1990 and the joint
meeting with Arts and Museum Commissions for March 26, 1990. Council approved.
BRENMORE ASSOCIATES/CABLEVISION RATES/PUBLIC HEARING
Mayor Ferrito requested that a public hearing be set for February 20, 1990 to consider the rate
increases which have been proposed by the company. Council approved.
PLANNING COMMISSION/PLANNING DEPARTMENT MONTHLY STATUS REPORT
Mr. Ventura asked for consideration of item 21 on page 4 of the staff report concerning Wooded
View Dr. 4 lot subdivision, asking that the same guidelines be used for this development as those
included in the recent Blossom Hill Hillside study area. After clarification by staff, report was
received and filed for information.
TC:D1:MM020590
8